(Alliance News) - Midwich Group PLC on Tuesday upped its half year dividend, as both revenue and pretax profit climbed by 46%.
In the six months to June 30, the audio visual technology distributor reported statutory revenue of GBP568.6 million, up 46% from GBP390.1 million the year prior.
Statutory pretax profit also climbed 46% to GBP10.4 million from GBP7.1 million in the first six months of 2021.
Midwich said that this reflects strong demand in all regions and the contribution of two UK & Ireland acquisitions, which were completed in the period.
In February, it bought specialist communication technology company Nimans Ltd for GBP27.5 million, whilst it also acquired a 65% controlling stake in DVS Ltd's parent company Cooper Projects Ltd for GBP8.6 million in January.
With revenue and profit rising, Midwich lifted its interim payout by 36% to 4.5 pence per share from 3.3p a year earlier.
Looking ahead, Midwich said the AV market is expected to recover to its 2019 size by the end of 2022. It also expects the company to "improve steadily" across the remainder of 2022 and into 2023, although macroeconomic risks remain challenging.
It added that trading since the end of June has been in line with its recently upgraded expectations.
Managing Director Stephen Fenby said: "Shortages of product and supply chain challenges appear to be easing in some areas, although critical component shortages continue to cause difficulties in completing projects. Our order books remain strong."
Shares in Midwich were down 0.8% to 523.00 pence each in London on Tuesday morning.
By Sophie Rose; sophierose@alliancenews.com
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Midwich Group (MIDW)